If the price is lower that the equilibrium price, which of the following will occur?

Question

Quizplus · Accepted Answer

If the price is lower than the equilibrium price, there will be excess demand as consumers demand more goods or services than what is available in the market at that price. This excess demand will lead to suppliers raising the price until it reaches the equilibrium price, where supply and demand are in balance. Therefore, the price will rise to the equilibrium price.

If the Price Is Lower That the Equilibrium Price, Which